THOR INDUSTRIES INC [THO] Filings

10-Q 1 tho-20220430.htm 10-Q tho-20220430

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended April 30, 2022.

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from ____ to ____.

COMMISSION FILE NUMBER 001-09235

THOR INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

Delaware

93-0768752

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

601 E. Beardsley Ave., Elkhart, IN

46514-3305

(Address of principal executive offices)

(Zip Code)

(574) 970-7460

(Registrant's telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Name of each exchange

Title of each class

Trading Symbol(s)

on which registered

Common stock (Par value $.10 Per Share)

THO

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑ Accelerated filer ☐

Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☑

As of May 31, 2022, 54,531,138 shares of the registrant’s common stock, par value $0.10 per share, were outstanding.

PART I – FINANCIAL INFORMATION (Unless otherwise indicated, amounts in thousands except share and per share data.)

ITEM 1. FINANCIAL STATEMENTS

THOR INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


	April 30, 2022		July 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	329,297	$	445,852
Restricted cash	2,682		2,854
Accounts receivable, trade, net	1,166,316		796,489

Accounts receivable, other, net	80,482		153,443
Inventories, net	1,734,079		1,369,384
Prepaid income taxes, expenses and other	45,658		35,501

Total current assets	3,358,514		2,803,523
Property, plant and equipment, net	1,233,907		1,185,131
Other assets:
Goodwill	1,834,873		1,563,255
Amortizable intangible assets, net	1,171,149		937,171
Deferred income tax assets, net	1,159		41,216

Other	135,898		123,792
Total other assets	3,143,079		2,665,434
TOTAL ASSETS	$	7,735,500	$	6,654,088

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,029,300	$	915,045
Current portion of long-term debt	10,991		12,411
Short-term financial obligations	18,189		25,720
Accrued liabilities:
Compensation and related items	280,662		249,761
Product warranties	309,377		267,620
Income and other taxes	66,808		85,789
Promotions and rebates	123,930		128,869
Product, property and related liabilities	46,971		38,590


Other	85,429		70,980

Total current liabilities	1,971,657		1,794,785
Long-term debt	1,983,596		1,594,821
Deferred income tax liabilities, net	141,520		113,598
Unrecognized tax benefits	25,603		15,844
Other liabilities	171,941		186,934
Total long-term liabilities	2,322,660		1,911,197
Contingent liabilities and commitments
Stockholders’ equity:
Preferred stock – authorized 1,000,000 shares; none outstanding	—		—
Common stock – par value of $.10 per share; authorized 250,000,000 shares; issued 66,059,403 and 65,651,570 shares, respectively	6,606		6,565
Additional paid-in capital	490,686		460,482
Retained earnings	3,555,766		2,770,401
Accumulated other comprehensive income (loss), net of tax	(142,609)		44,621
Less treasury shares of 11,528,265 and 10,285,329, respectively, at cost	(476,558)		(360,226)
Stockholders’ equity attributable to THOR Industries, Inc.	3,433,891		2,921,843
Non-controlling interests	7,292		26,263
Total stockholders’ equity	3,441,183		2,948,106
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	7,735,500	$	6,654,088

See Notes to the Condensed Consolidated Financial Statements.

THOR INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)


	Three Months Ended April 30,				Nine Months Ended April 30,
	2022		2021		2022		2021
Net sales	$	4,657,517	$	3,459,264	$	12,490,759	$	8,724,412
Cost of products sold	3,850,072		2,953,984		10,352,616		7,425,403
Gross profit	807,445		505,280		2,138,143		1,299,009
Selling, general and administrative expenses	281,676		231,834		845,009		619,786
Amortization of intangible assets	40,725		30,480		117,288		87,110


Interest income	570		142		854		662
Interest expense	22,859		26,808		68,370		75,248
Other income (expense), net	(348)		16,379		13,172		25,430
Income before income taxes	462,407		232,679		1,121,502		542,957
Income tax provision	116,389		49,960		265,046		113,409
Net income	346,018		182,719		856,456		429,548
Less: Net (loss) attributable to non-controlling interests	(2,033)		(592)		(405)		(44)
Net income attributable to THOR Industries, Inc.	$	348,051	$	183,311	$	856,861	$	429,592

Weighted-average common shares outstanding:
Basic	54,906,356		55,366,241		55,278,320		55,323,080
Diluted	55,068,783		55,723,378		55,507,023		55,615,107

Earnings per common share:
Basic	$	6.34	$	3.31	$	15.50	$	7.77
Diluted	$	6.32	$	3.29	$	15.44	$	7.72




Comprehensive income:
Net income	$	346,018	$	182,719	$	856,456	$	429,548
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	(90,910)		(7,449)		(196,051)		33,691
Unrealized gain on derivatives, net of tax	3,620		2,929		8,104		8,612
Other (loss), net of tax	—		—		(372)		—
Total other comprehensive income (loss), net of tax	(87,290)		(4,520)		(188,319)		42,303
Total Comprehensive income	258,728		178,199		668,137		471,851
Less: Comprehensive income (loss) attributable to non-controlling interests	(2,417)		(647)		(1,494)		41
Comprehensive income attributable to THOR Industries, Inc.	$	261,145	$	178,846	$	669,631	$	471,810

See Notes to the Condensed Consolidated Financial Statements.

THOR INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


	Nine Months Ended April 30,
	2022		2021
Cash flows from operating activities:
Net income	$	856,456	$	429,548
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	95,206		82,533
Amortization of intangible assets	117,288		87,110
Amortization of debt issuance costs	8,457		12,825


Deferred income tax benefit	(18,830)		(4,499)
(Gain) loss on disposition of property, plant and equipment	833		(296)
Stock-based compensation expense	22,736		21,424
Changes in assets and liabilities:
Accounts receivable	(256,180)		(175,635)
Inventories, net	(338,852)		(632,506)
Prepaid income taxes, expenses and other	(4,578)		(28,280)
Accounts payable	78,897		341,535

Accrued liabilities	92,693		32,581
Long-term liabilities and other	(16,577)		8,733
Net cash provided by operating activities	637,549		175,073
Cash flows from investing activities:
Purchases of property, plant and equipment	(170,702)		(81,162)
Proceeds from dispositions of property, plant and equipment	823		1,742
Business acquisitions, net of cash acquired	(781,967)		(310,938)


Other	(20,000)		9,330
Net cash used in investing activities	(971,846)		(381,028)
Cash flows from financing activities:

Borrowings on revolving asset-based credit facilities	660,088		225,676
Payments on revolving asset-based credit facilities	(559,035)		(114,836)
Proceeds from issuance of senior unsecured notes	500,000		—
Payments on term-loan credit facilities	(124,565)		(59,700)

Payments on other debt	(7,842)		(9,711)
Payments of debt issuance costs	(8,445)		—
Regular cash dividends paid	(71,496)		(68,100)
Payments on finance lease obligations	(801)		(492)
Purchases of treasury shares	(98,321)		—
Payments related to vesting of stock-based awards	(18,011)		(8,317)
Short-term financial obligations and other, net	(21,120)		(7,323)
Net cash provided by (used in) financing activities	250,452		(42,803)
Effect of exchange rate changes on cash and cash equivalents and restricted cash	(32,882)		4,857
Net decrease in cash and cash equivalents and restricted cash	(116,727)		(243,901)
Cash and cash equivalents and restricted cash, beginning of period	448,706		541,363
Cash and cash equivalents and restricted cash, end of period	331,979		297,462
Less: restricted cash	2,682		2,900
Cash and cash equivalents, end of period	$	329,297	$	294,562
Supplemental cash flow information:
Income taxes paid	$	270,063	$	172,397
Interest paid	$	59,454	$	62,048
Non-cash investing and financing transactions:
Capital expenditures in accounts payable	$	7,914	$	3,497

See Notes to the Condensed Consolidated Financial Statements.


THOR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE THREE AND NINE MONTHS ENDED APRIL 30, 2022 AND 2021 (UNAUDITED)

	Three Months Ended April 30, 2022
								Accumulated					Stockholders’
				Additional				Other					Equity		Non-		Total
	Common Stock			Paid-In		Retained		Comprehensive		Treasury Stock			Attributable		controlling		Stockholders’
	Shares	Amount		Capital		Earnings		Income (Loss)		Shares	Amount		to THOR		Interests		Equity
Balance at February 1, 2022	66,059,403	$	6,606	$	479,946	$	3,231,378	$	(55,703)	11,029,159	$	(436,568)	$	3,225,659	$	27,925	$	3,253,584
Net income (loss)	—	—		—		348,051		—		—	—		348,051		(2,033)		346,018
Purchases of treasury shares	—	—		—		—		—		499,106	(39,990)		(39,990)		—		(39,990)
Restricted stock unit activity	—	—		(526)		—		—		—	—		(526)		—		(526)
Dividends $0.43 per common share	—	—		—		(23,663)		—		—	—		(23,663)		—		(23,663)
Stock-based compensation expense	—	—		9,750		—		—		—	—		9,750		—		9,750
Other comprehensive income (loss)	—	—		—		—		(86,906)		—	—		(86,906)		(384)		(87,290)
Dividend paid to non-controlling interest	—	—		—		—		—		—	—		—		(555)		(555)
Acquisitions	—	—		1,516		—		—		—	—		1,516		(17,661)		(16,145)
Balance at April 30, 2022	66,059,403	$	6,606	$	490,686	$	3,555,766	$	(142,609)	11,528,265	$	(476,558)	$	3,433,891	$	7,292	$	3,441,183

	Nine Months Ended April 30, 2022
								Accumulated					Stockholders’
				Additional				Other					Equity		Non-		Total
	Common Stock			Paid-In		Retained		Comprehensive		Treasury Stock			Attributable		controlling		Stockholders’
	Shares	Amount		Capital		Earnings		Income (Loss)		Shares	Amount		to THOR		Interests		Equity
Balance at August 1, 2021	65,651,570	$	6,565	$	460,482	$	2,770,401	$	44,621	10,285,329	$	(360,226)	$	2,921,843	$	26,263	$	2,948,106
Net income (loss)	—	—		—		856,861		—		—	—		856,861		(405)		856,456
Purchases of treasury shares	—	—		—		—		—		1,090,067	(98,321)		(98,321)		—		(98,321)
Restricted stock unit activity	407,833	41		5,952		—		—		152,869	(18,011)		(12,018)		—		(12,018)
Dividends $1.29 per common share	—	—		—		(71,496)		—		—	—		(71,496)		—		(71,496)
Stock-based compensation expense	—	—		22,736		—		—		—	—		22,736		—		22,736
Other comprehensive income (loss)	—	—		—		—		(187,230)		—	—		(187,230)		(1,089)		(188,319)
Dividend paid to non-controlling interest	—	—		—		—		—		—	—		—		(555)		(555)
Acquisitions	—	—		1,516		—		—		—	—		1,516		(16,922)		(15,406)
Balance at April 30, 2022	66,059,403	$	6,606	$	490,686	$	3,555,766	$	(142,609)	11,528,265	$	(476,558)	$	3,433,891	$	7,292	$	3,441,183

See Notes to the Condensed Consolidated Financial Statements.


THOR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE THREE AND NINE MONTHS ENDED APRIL 30, 2022 AND 2021 (UNAUDITED)

	Three Months Ended April 30, 2021
								Accumulated					Stockholders’
				Additional				Other					Equity		Non-		Total
	Common Stock			Paid-In		Retained		Comprehensive		Treasury Stock			Attributable		controlling		Stockholders’
	Shares	Amount		Capital		Earnings		Income (Loss)		Shares	Amount		to THOR		Interests		Equity
Balance at February 1, 2021	65,651,570	$	6,565	$	448,010	$	2,402,211	$	73,676	10,285,329	$	(360,226)	$	2,570,236	$	26,475	$	2,596,711
Net income (loss)	—	—		—		183,311		—		—	—		183,311		(592)		182,719
Restricted stock unit activity	—	—		(2,049)		—		—		—	—		(2,049)		—		(2,049)
Dividends $0.41 per common share	—	—		—		(22,700)		—		—	—		(22,700)		—		(22,700)
Stock-based compensation expense	—	—		8,366		—		—		—	—		8,366		—		8,366
Other comprehensive income (loss)	—	—		—		—		(4,465)		—	—		(4,465)		(55)		(4,520)

Dividend paid to non-controlling interests	—	—		—		—		—		—	—		—		(605)		(605)
Balance at April 30, 2021	65,651,570	$	6,565	$	454,327	$	2,562,822	$	69,211	10,285,329	$	(360,226)	$	2,732,699	$	25,223	$	2,757,922

	Nine Months Ended April 30, 2021
								Accumulated					Stockholders’
				Additional				Other					Equity		Non-		Total
	Common Stock			Paid-In		Retained		Comprehensive		Treasury Stock			Attributable		controlling		Stockholders’
	Shares	Amount		Capital		Earnings		Income (Loss)		Shares	Amount		to THOR		Interests		Equity
Balance at August 1, 2020	65,396,531	$	6,540	$	436,828	$	2,201,330	$	26,993	10,197,775	$	(351,909)	$	2,319,782	$	25,787	$	2,345,569
Net income (loss)	—	—		—		429,592		—		—	—		429,592		(44)		429,548
Restricted stock unit activity	255,039	25		(3,925)		—		—		87,554	(8,317)		(12,217)		—		(12,217)
Dividends $1.23 per common share	—	—		—		(68,100)		—		—	—		(68,100)		—		(68,100)
Stock-based compensation expense	—	—		21,424		—		—		—	—		21,424		—		21,424
Other comprehensive income (loss)	—	—		—		—		42,218		—	—		42,218		85		42,303

Dividend paid to non-controlling interests	—	—		—		—		—		—	—		—		(605)		(605)
Balance at April 30, 2021	65,651,570	$	6,565	$	454,327	$	2,562,822	$	69,211	10,285,329	$	(360,226)	$	2,732,699	$	25,223	$	2,757,922

See Notes to the Condensed Consolidated Financial Statements.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(All U.S. Dollar, Euro and British Pound Sterling amounts presented in thousands except share and per share data or except as otherwise specified)

1. Nature of Operations and Accounting Policies

Nature of Operations

THOR Industries, Inc. was founded in 1980 and is the sole owner of operating subsidiaries (collectively, the “Company” or “THOR”), that, combined, represent the world's largest manufacturer of recreational vehicles (“RVs”). The Company manufactures a wide variety of RVs in the United States and Europe and sells those vehicles, as well as related parts and accessories, primarily to independent, non-franchise dealers throughout the United States, Canada and Europe. Unless the context requires or indicates otherwise, all references to “THOR,” the “Company,” “we,” “our” and “us” refer to THOR Industries, Inc. and its subsidiaries.

The July 31, 2021 amounts are derived from the annual audited financial statements of THOR. The interim financial statements are unaudited. In the opinion of management, all adjustments (which consist of normal, recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented have been made. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2021. Due to seasonality within the recreational vehicle industry, and the impact of the ongoing supply chain disruptions on our industry, among other factors, annualizing the results of operations for the nine months ended April 30, 2022 would not necessarily be indicative of the results expected for the full fiscal year.

2. Acquisitions

Airxcel

On September 1, 2021, the Company acquired Wichita, Kansas-based AirX Intermediate, Inc. (“Airxcel”). Airxcel manufactures a comprehensive line of high-quality component products which are sold primarily to original equipment RV manufacturers as well as consumers via aftermarket sales through dealers and retailers. Airxcel provides industry-leading products in recreational vehicle heating, cooling, ventilation, cooking, window coverings, sidewalls and roofing materials, among others. The initial cash consideration for the Airxcel acquisition was $750,000 in cash, subject to adjustments, and was funded through a combination of cash-on-hand and $625,000 of borrowings from the Company's asset-based credit facility (“ABL”). The total cash consideration to be paid was subject to the final determination of the actual acquired net working capital as of the close of business on September 1, 2021, which was finalized in the second quarter of fiscal 2022 and the true-up reduced the cash consideration to $745,279, net of cash acquired. In conjunction with the Airxcel acquisition, the Company expanded its existing ABL facility from $750,000 to $1,000,000, favorably amended certain terms of the agreement and extended the term of the ABL as discussed in Note 12 to the Condensed Consolidated Financial Statements. The interest rate provisions remain unchanged.

The Company acquired Airxcel as part of its long-term, strategic growth plan and the acquisition is expected to provide numerous benefits, including strengthening the RV supply chain, diversifying its revenue sources and expanding Airxcel’s supply chain business in North America and Europe. Airxcel operates as an independent operation in the same manner as the Company's other subsidiaries.

The results of Airxcel are included in the Company’s Condensed Consolidated Statements of Income and Comprehensive Income since the September 1, 2021 acquisition date. Airxcel recorded net sales of $371,503, net of intercompany sales, and net income before income taxes, net of intercompany profit elimination, of $25,595 for the period from the date of acquisition through April 30, 2022. Net income before income taxes includes a charge of $6,791 related to the step-up in assigned value of acquired Airxcel inventory that was included in cost of products sold, and also includes $25,930 in amortization expense related to the acquired intangible assets.

From the acquisition date through April 30, 2022, the Company made immaterial measurement period adjustments to better reflect the facts and circumstances that existed at the acquisition date. The following table summarizes the estimated fair values of the Airxcel net assets acquired on the acquisition date. The Company is in the process of finalizing the fair value analysis, but this analysis has not been fully completed. The provisional amounts included below, related to deferred income tax liabilities and certain accrued expenses, remain subject to potential adjustment. The Company expects to finalize these values as soon as practical and no later than one year from the acquisition date.


Cash	$	23,404
Inventory	71,150
Other assets	62,657
Property, plant and equipment	40,518
Amortizable intangible assets:
Customer relationships	284,000
Trademarks	56,900
Design technology assets	60,600
Backlog	700
Goodwill	368,688
Current liabilities	(109,586)
Deferred income tax liabilities	(79,115)
Other liabilities	(10,494)
Non-controlling interest	(739)
Total fair value of net assets acquired	768,683
Less cash acquired	(23,404)
Total cash consideration for acquisition, less cash acquired	$	745,279

On the acquisition date, amortizable intangible assets had a weighted-average useful life of 18.3 years. The customer relationships were valued based on the Discounted Cash Flow Method and are being amortized on an accelerated basis over 20 years. The trademarks were valued on the Relief from Royalty Method and are being amortized on a straight-line basis over 20 years. The design technology assets were valued on the Relief from Royalty Method and are being amortized on a straight-line basis over 10 years. Backlog was valued based on the Discounted Cash Flow Method and was amortized on a straight-line basis over two months. The majority of the goodwill recognized as a result of this transaction is not deductible for tax purposes.

Tiffin Group

On December 18, 2020, the Company acquired luxury motorized recreational vehicle manufacturer Tiffin Motorhomes, Inc., including fifth wheel towable recreational vehicle manufacturer Vanleigh RV, and certain other associated operating and supply companies, which primarily supply component parts and services to Tiffin Motorhomes, Inc. and Vanleigh RV (collectively, the “Tiffin Group”). Tiffin Group, LLC, a wholly-owned subsidiary of the Company, owns the Tiffin Group. Tiffin Motorhomes, Inc. operates out of various locations in Alabama while Vanleigh RV operates out of Mississippi.

The cash consideration for the acquisition of the Tiffin Group was $288,238, net of cash acquired, and was funded through existing cash-on-hand as well as $165,000 in borrowings from the Company’s existing asset-based credit facility.

The following table summarizes the final fair values of the Tiffin Group net assets acquired on the acquisition date.


Cash	$	13,074
Inventory	116,441
Other assets	53,860
Property, plant and equipment	48,262
Amortizable intangible assets:
Dealer network	92,200
Trademarks	32,100
Non-compete agreements	1,400
Backlog	4,800
Goodwill	65,064
Current liabilities	(81,423)
Deferred income tax liabilities	(37,263)
Other liabilities	(7,203)
Total fair value of net assets acquired	301,312
Less cash acquired	(13,074)
Total cash consideration for acquisition, less cash acquired	$	288,238

On the acquisition date, amortizable intangible assets had a weighted-average useful life of 18.8 years. The dealer network was valued based on the Discounted Cash Flow Method and is being amortized on an accelerated basis over 18 to 20 years. The trademarks were valued on the Relief from Royalty Method and are being amortized on a straight-line basis over 20 years. Backlogs were valued based on the Discounted Cash Flow Method and were amortized on a straight-line basis over five to seven months. Generally, the goodwill recognized as a result of this transaction is not deductible for tax purposes.

The following unaudited pro forma information represents the Company’s results of operations as if the fiscal 2022 acquisition of Airxcel had occurred at the beginning of fiscal 2021 and the fiscal 2021 acquisition of the Tiffin Group had occurred at the beginning of fiscal 2020. These pro forma results may not be indicative of the actual results that would have occurred under the ownership and management of the Company.


	Three Months Ended April 30,
	2022		2021
Net sales	$	4,657,517	$	3,595,680
Net income attributable to THOR Industries, Inc.	$	348,051	$	190,564
Basic earnings per common share	$	6.34	$	3.44
Diluted earnings per common share	$	6.32	$	3.42


	Nine Months Ended April 30,
	2022		2021
Net sales	$	12,538,217	$	9,352,649
Net income attributable to THOR Industries, Inc.	$	863,674	$	457,147
Basic earnings per common share	$	15.62	$	8.26
Diluted earnings per common share	$	15.56	$	8.22

Togo Group

As discussed in Note 2 to the Company’s Consolidated Financial Statements included in the Fiscal 2021 Form 10-K, the Company held a 73.5% ownership interest in the Togo Group, which was rebranded as Roadpass Digital in November 2021. During the third quarter of fiscal 2022, the Company acquired the remaining interest in Togo Group for $16,144 in cash, and as a result holds a 100% ownership interest in Togo Group as of April 30, 2022.

3. Business Segments

The Company has three reportable segments, all related to recreational vehicles: (1) North American Towables, (2) North American Motorized and (3) European. The operations of the Company’s Postle, Roadpass Digital (formerly Togo Group) and Airxcel subsidiaries are included in Other. Net sales included in Other related primarily to the sale of component parts and aluminum extrusions. Intercompany eliminations adjust for Postle and Airxcel sales primarily to the Company’s North American Towables and North American Motorized segments, which are consummated at established transfer prices generally consistent with the selling prices of products to third parties.

The following tables reflect certain financial information by reportable segment:


	Three Months Ended April 30,				Nine Months Ended April 30,
NET SALES:	2022		2021		2022		2021
Recreational vehicles
North American Towables	$	2,640,137	$	1,726,102	$	6,866,059	$	4,491,327
North American Motorized	1,053,045		775,393		2,954,879		1,846,243
Total North America	3,693,182		2,501,495		9,820,938		6,337,570
European	724,002		894,240		2,080,729		2,230,191
Total recreational vehicles	4,417,184		3,395,735		11,901,667		8,567,761
Other	383,170		106,960		935,146		262,381
Intercompany eliminations	(142,837)		(43,431)		(346,054)		(105,730)
Total	$	4,657,517	$	3,459,264	$	12,490,759	$	8,724,412


	Three Months Ended April 30,				Nine Months Ended April 30,
INCOME (LOSS) BEFORE INCOME TAXES:	2022		2021		2022		2021

Recreational vehicles
North American Towables	$	326,697	$	167,693	$	868,874	$	456,752
North American Motorized	116,293		54,780		309,228		139,768
Total North America	442,990		222,473